by Canadian dealers want their country to expand the regulatory framework for importing vehicles from Korea, Japan, and Europe. They argue that these cars are already safe enough and that aligning regulatory standards with EU standards is a reasonable step. This would give Canada the opportunity to gain access to cars that are still unavailable to buyers in the USA. Canadians are going to pay more for cars due to tariffs imposed by Donald Trump. In this regard, the Canadian Automobile Dealers Association has several ideas on how to help.
One of the biggest ideas is changing the regulations to allow cars from Europe, Japan, and Korea into the country. This would give Canada access to a significantly larger number of cars than the USA, which could significantly weaken Trump’s tariff tactics. Currently, Canada’s safety and environmental standards are aligned with US standards. This limits Canada’s ability to import and sell cars that are intended for the EU, Japanese, and Korean markets specifically. If a car is not intended for the American market, you likely won’t see it in Canada.
“This means Canadians only get the cars and brands that Americans find accessible and attractive, because sales volume in Canada alone does not justify the costs associated with adapting cars to North American standards,” said Tim Reuss of the Canadian Automobile Dealers Association. “This measure would mean expanding Canada’s trade horizon, is supported by virtually all manufacturers, including American ones, and will not be perceived as a response to any US actions. This is an opportunity that we can use additionally,” Reuss continued. Essentially, Canada would open up the possibility of importing cars that Americans are forbidden from. Instead of paying tariffs on American cars, it would use its free trade agreements with other countries and could bypass American cars.
The obvious measure could also force the US to align with EU safety standards in the future. As Reuss very aptly noted, “Do you really believe that a car that has been certified environmentally and deemed safe enough to drive on… is not safe enough to drive in Canada?” The same could probably be said about American roads then. If Canada actually implements this idea, many Americans will likely seek out cars they don’t have access to. The Canadian Automobile Dealers Association also had other ideas to reduce the impact of tariffs.
Among them are eliminating requirements for electric vehicles, preventing large banks from participating in car leasing, abolishing the luxury car tax, and compensating dealers who missed out on iZEV incentives that some dealers expected to receive sooner than happened. For now, it will be up to the Canadian government to respond to this, but some ideas could indeed weaken the impact of Trump’s tariffs on the nation.
